Leapmotor achieved record sales in the first half of the year, turning losses into profits, with revenue increasing by nearly 180% year-on-year | Financial Report Insights

Thanks to a significant increase in sales and expansion into overseas markets, Chinese new energy vehicle company XPeng achieved a turnaround from loss to profit in the first half of this year.

On Monday, August 18, XPeng released its financial performance for the six months ending June 30, 2025, with specific details as follows:

Profit: The company made a profit of 33 million yuan (approximately 4.6 million USD) in the first half of the year, compared to a loss of 2.2 billion yuan in the same period last year.

Revenue: Revenue for the first half of the year was 24.25 billion yuan, a year-on-year increase of 174.0%. Q2 revenue was 14.2296 billion yuan.

Gross Margin: The gross margin for the first half of the year was 14.1%, an increase of 13 percentage points from 1.1% in the same period of 2024, setting a new record for semi-annual gross margin since the company's establishment.

Cash Flow: The net cash generated from operating activities in the first half of the year was 2.86 billion yuan, compared to 270 million yuan in the same period of 2024. The company's free cash flow was 860 million yuan, while it was negative 480 million yuan in the same period of 2024. The company has ample funds, with cash and cash equivalents, restricted cash, financial assets measured at fair value through profit or loss, and bank time deposits totaling 29.58 billion yuan.

Sales Volume: The company delivered 221,600 vehicles in the first half of the year, a year-on-year increase of 156%, setting a historical high and ranking first among new force brands in China.

July Sales: Entering the second half of the year, July single-month deliveries exceeded 50,000 vehicles, breaking the brand's historical record with a year-on-year increase of over 126%.

XPeng was previously considered a "marginal player" in China's new energy vehicle industry, but now its sales and stock performance have surpassed all competitors in the new car-making force. The stock price has more than tripled since the low point in August last year.

First Semi-Annual Net Profit Turnaround

The biggest highlight of XPeng's financial report for the first half of 2025 is undoubtedly the first achievement of a positive semi-annual net profit. The net profit of 33 million yuan in the first half of the year contrasts with a loss of 2.2 billion yuan in the same period last year. This marks the company's first profitability at the semi-annual level, making it the second company among China's new car-making forces to achieve semi-annual profitability.

The explosive growth in revenue has laid a solid foundation for profitability. The semi-annual revenue of 24.25 billion yuan, with a year-on-year growth rate of 174.0%, is mainly attributed to the significant increase in vehicle and spare parts deliveries, as well as contributions from strategic partnerships and carbon credit trading as new revenue sources.

At the same time, the gross margin increased significantly from 1.1% in the same period last year to 14.1%, mainly due to the scale effect brought by the increase in sales, ongoing cost management, optimization of the product mix, and income from other businesses. In terms of cost structure, the sales cost was 20.82 billion yuan, a year-on-year increase of 137.9%, which is significantly lower than the revenue growth rate of 174.0%, indicating that the company has made substantial progress in cost control and efficiency improvement

Strong Sales Performance

Leapmotor's performance in terms of sales is remarkable. The total delivery volume of 221,664 units in the first half of the year not only represents a year-on-year growth of 155.7% , but more importantly, it firmly holds the top position among new force brands. In July, the monthly delivery volume reached 50,129 units, ranking first in the sales list of Chinese new force brands for five consecutive months, becoming the only Chinese new force brand to exceed 50,000 monthly deliveries in 2025. As of June 18, 2025, Leapmotor's cumulative delivery volume surpassed 800,000 units, achieving an important milestone.

From a product perspective, the company is in a concentrated harvest period of its product cycle. The C10 has achieved over 100,000 global deliveries in just 13 months since its launch, with a peak monthly delivery volume exceeding 14,000 units. As of August 12, 2025, the C10 has maintained its position as the top-selling medium-sized SUV among new force car brands for three consecutive months.

In June 2025, the cumulative sales of the C11 crossed the milestone of 250,000 units, setting a new record. As of August 13, 2025, the C16 has ranked first in sales among medium and large SUVs priced under 200,000 yuan for eight consecutive weeks. Notably, the market performance of the B10 is particularly impressive, with deliveries exceeding 10,000 units in the month following its launch, making it Leapmotor's fastest product to reach this milestone. The B01, launched on July 24, received over 10,000 orders within 72 hours of its launch, and Leapmotor expects its sales to set new highs based on the B10.

These figures reflect the increasingly complete product matrix of Leapmotor and a significant improvement in market recognition. Products built on the new LEAP 3.5 architecture have successfully achieved differentiated competitive advantages under the "technology equality" strategy, featuring end-to-end assisted driving, an 800V high-voltage platform, and laser radar among other high-end configurations.

Deepening Technological Self-Research Moat

Leapmotor's greatest differentiated advantage lies in its comprehensive self-research capabilities, which have been further deepened in the first half of 2025. The company released the LEAP 3.5 technology architecture, which utilizes a Qualcomm 8650 chip combination to achieve the highest level of global integration in central domain control. This "four-domain integration" architectural innovation is leading in the industry.

In the field of intelligent driving, the company's investment has significantly increased. The scale of the intelligent driving team and the investment in computing resources have both increased by nearly 100%. The city commuting navigation assistance function based on end-to-end algorithms has achieved mass production and is now on vehicles for the first time. Notably, the development efficiency of the assisted driving solution based on the Qualcomm 8650 domain control combination under the EEA 3.5 architecture has significantly improved, completing development in just six months. This rapid iteration capability is crucial in technological competition.

The company's self-researched AR-HUD technology has also begun commercial application, first equipped in the all-new C11, with a 60-inch AR-HUD being the largest in its class. More importantly, Leapmotor's CTC battery has passed the new national standard requirements for power batteries ahead of schedule, obtaining the "most stringent national standard safety pass" a year in advance, with over 250,000 sets of CTC2.0 batteries already equipped in various platform models.

Accelerating Global Strategy

Leapmotor's globalization process has clearly accelerated. In the first half of this year, it exported 20,375 vehicles. In July, its market share in Germany's pure electric vehicle market surpassed 1%, and the order volume from European users also reached a new high of 4,000 orders The first batch of B10 vehicles under the brand has been shipped to Europe last month and will officially debut at the Munich Auto Show in September. The company also plans to achieve localized production in Europe by 2026.

The collaboration with Stellantis Group is an important support for the globalization strategy. The localization assembly project in Malaysia has officially started, with the first Leapmotor C10-OTS vehicle completed and rolled off the assembly line. The company plans to establish a localized production base in Europe by the end of 2026, and this "reverse overseas expansion" light asset model has indeed created a new paradigm for Chinese car companies going abroad.

As of the end of June, Leapmotor International has established over 600 sales and after-sales service outlets in about 30 international markets, with more than 550 in Europe, setting a new record for the speed of new force brands entering overseas markets.

However, globalization also faces uncertain challenges. Trade barriers against Chinese electric vehicles in the European and American markets are increasing, and geopolitical risks are rising, which may impact the company's overseas expansion plans. At the same time, the profitability and investment return cycle in overseas markets still need to be verified.

Significant Improvement in Cash Flow

Leapmotor's cash flow situation has shown significant improvement. The net cash flow from operating activities surged from 270 million yuan in the same period last year to 2.86 billion yuan, and free cash flow turned from a negative 480 million yuan to a positive 860 million yuan. This improvement is mainly attributed to increased product delivery volume, optimized gross margin, and enhanced management of operating cash flow.

The company currently has 29.58 billion yuan in cash on hand, which is at a relatively safe level among new force car companies. However, investors need to pay attention to the fact that the company's capital expenditure needs remain strong. Capital expenditure in the first half of the year was 2 billion yuan, mainly for investment in new factory machinery and equipment and the introduction of new model production lines in existing factories. As of June 30, the capital commitment for the acquisition of properties, plants, and equipment reached 5.34 billion yuan.

This large-scale capital investment reflects the capital-intensive characteristics of the new energy vehicle industry